18 Mar 2016

Landlord rent cap rules approved by MSPs

Landlord rent cap rules approved by MSPs


New rules which could see rent caps imposed on landlords have been passed by the Scottish Parliament.

The Scottish Government says The Private Housing (Tenancies) (Scotland) Bill will create simpler tenancies, offer stability and security to the 700,000 tenants who call the private rented sector home, and ensure predictability over rent increases.

However, The Scottish Association of Landlords had claimed the bill could drive some people out of the market.

What's changing?

This new tenancy represents a significant change in private renting. Key measures contained in the bill include:

  • Improved security for tenants, which means they cannot be asked to leave their home simply because the tenancy agreement has reached its end date
  • Comprehensive and robust repossession grounds which will enable a landlord to regain possession of their property in reasonable circumstances
  • The opportunity for local authorities to implement rent caps in areas where there are excessive rent increases
  • Moves to a more streamlined system with no confusing pre-tenancy notices and easier-to-understand model tenancy agreement.

In an announcement made to Parliament, Housing Minister Margaret Burgess also confirmed the Scottish Government’s intention that no fees will be charged for anyone taking a case to the Housing and Property Tribunal.

Mrs Burgess said: "These significant changes will transform the private rented sector, creating a more modern tenancy, bring stability to the sector and helping to meet Scotland’s housing needs."

What does it mean for landlords?

Adrian Sangster, National Leasing Director at Aberdein Considine, welcomed the changes, but voiced concerns regarding rent caps.

He said: “Whilst we support efforts to improve standards within the private rented sector, any legislation should be proportionate, protecting the interests of both landlords and tenants.

“It is my opinion that an introduction of rent controls will deter investment in the sector and curtail much needed housing.

"Landlords are not to blame for the failures of successive administrations regarding the provision of social sector housing."

Professional leasing support for landlords

Aberdein Considine offers a full property leasing and management service for landlords across Scotland, including Aberdeen, Edinburgh, Perth, Glasgow and Stirling.

To speak to one of our leasing experts, call 0333 0066 333 or click here.

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